The CEO of Grayscale explained that the option is on the table and defended that the company has done everything possible to turn GBTC, its flagship product, into a Bitcoin ETF that already receives back up from more than 800,000 investors.
The management company of investment funds focused on digital assets, Grayscale, revealed that it intends to take legal action against the US Securities and Exchange Commission (SEC) if it does not give up on rejecting the fully-based ETF’s release.
This information got revealed during an interview the CEO of Grayscale sustained with Bloomberg. The representative argues that the SEC would have Illegal behavior by continuing to reject the approval of the first fully Bitcoin-based exchange-traded fund (ETF).
This rejection impacts the local market and has caused tensions between entities interested in releasing these items.
Sonnenshein expressed that everything is possible when asked if Grayscale considers filing an Administrative Procedure Act. He said that the Grayscale team has been putting all the company’s resources into turning GBTC, their flagship fund, into an ETt.
That conversion turns out to be important because investors know that the company has stood up for them and will continue to stand up to safeguard their interests.
The CEO of Grayscale confirms what had already been rumored since mid-December 2021, since the vice president of the legal department for the company, Craig Salm, expressed that the perspective with which the SEC moved against the applications for a Bitcoin ETF could be arbitrary.
Rejection of a Bitcoin ETF
The criticism of the Grayscale manager highlights that the regulatory entity has continuously rejected applications for a Bitcoin ETF since the first of its type got shown, and the entity still maintains its position. In October of last year, it officially approved the first products focused on digital currency futures.
The SEC comments that there are not enough guarantees in any of the applications presented to date to assure that Bitcoin’s price would not suffer a possible market manipulation. There is still uncertainty on how the interested entities will keep clients safe in cases of substantial volatility.
Proposals from entities such as WisdomTree, VanEck, Skybridge Capital, NYDIG, Global X, Fidelity, and many others also got rejected for the reasons stated above, representing bad results for Galaxy Digital Ark Invest and even for the Grayscale itself.
Faced with the SEC’s refusal, VanEck’s CEO, Jan Van Eck, clarified that the Commission is purposely withholding the possibility of receiving an ETF focused entirely on Bitcoin to have greater power over the said financial market.
By: Jenson Nuñez
